Dearness Allowance: Sixth Central Pay Commission Recommendation: Finance Trading Times

Dearness Allowance: Sixth Central Pay Commission Recommendation

The Government of India has come out with the guidelines relating to the grant of Dearness Allowance to the Central Government Servants. In the article below, we aim to provide the same guidelines as per the Revised Rates of Dearness Allowance for Sixth Pay Commission Recommendations for Central Government Servants. Wikipedia has the following article on the Sixth Pay Commission of India.

Latest: Government approves 6% hike in DA: Dearness Allowance now at 51%: Sixth Pay Commission Recommendation


Dearness Allowance Sixth Commission Government SalaryBelow is the text that appears in the official Memorandum from the Joint Secretary and has been sent to all Ministries/Departments for their perusal.

Recommendation of Sixth Central Pay Commission - Decision of Government relating to the grant of Dearness Allowance to the Central Government Servants - Revised Rates.

New rates of Dearness Allowance DA has been announced.

From 1-1-2006 : No Dearness Allowance

From 1-7-2006 : 2% of Basic Pay and NPA, where applicable

From 1-1-2007 : 6% of Basic Pay and NPA, where applicable

From 1-7-2007 : 9% of Basic Pay and NPA, where applicable

From 1-1-2008 : 12% of Basic Pay and NPA, where applicable

From 1-7-2008 : 16% of Basic Pay and NPA, where applicable


State Wise Salary Hike details are covered in the links of the article: State Wise Salary Hike Details of Sixth Pay Commission. Please refer to the article and click on your respective state wise link for news and other information.

Link To: Revised Pay Scales, New Pay Bands Finalized by the Government

Links To: Sixth Pay Commission: Perks, Arrears, Increments & Key Points
Have Comments or Questions? Please post them as comments using "Post our Comments" link below. Your queries will be responded for free in 24 hrs!

1 Comment: Post your Comments

S.SAM DANIEL,,IPS said...(on 2 September 2008 at 14:30 )  

HAS THE CENTRAL GOVERNMENT DONE JUSTICE TO THE PENSIONERS?



The much awaited orders of the Central Govt revising the Pension of millions of Central Govt Pensioners have been issued in Memorandum F NO 38/37/08-P&PW[A] DT.1-9-2008 of the Ministry of Personnel,Public Grievances and Pension which is available in the website pensionersportal.gov.in. From the Pension Fitment Table available in the Memorandum, it is observed that only 50% of the Basic Pay [excluding 50% Dearness Pay effective from 1-4-2004] is taken as the Basic Pension .This Basic Pension is multiplied by 1.86 and 40% of this Basic Pension is added. This is the Consolidated [Revised]Pension with effect from 1-1-2006.
This Consolidated [Revised] Pension should not be less than 50% of the Minimum of the Corresponding Revised Pay Scale+Grade Pay according to the Pay Commission.It appears that in fact, these wordings have no effect at all with the Revised Scales of Pay corresponding to the Pre Revised Scales of Pay.
I desire to furnish a sample case for study.
An Officer drawing a Basic Pay of Rs 11,950/- in the Pay Scale of Rs 10,000-325-15,200 retired on 31-5-2004 is drawing a Basic Pension of Rs 8768/[including Dearness Pay] from 1-6-2004.The Commuted Amount from Pension is Rs 3507/-.The Residuary Pension is 5261/-.He was drawing Rs 7364/-from 1-1-2006 [Rs 5261+DA Rs 2103 [24%of Rs 8768/-]
The Pay Commission/Govt has taken 50% of Rs 11,950/- as Basic Pension and multiplied it by 1.86.[Rs5975x1.86].This comes to Rs 11,114/-.With this 40%[Rs 2390/-] of the Basic Pension , the Revised Pension of Rs13,504/-is arrived at..The Pay Commission /Govt has made it as Rs 13,505/-.
After deduction of the Commutation of Rs 3507, the Residuary Pension is Rs 9998/-from 1-1-2006..For the Revised Pension of Rs 13,505,there will be no Dearness Allowance from 1-1-2006 to 30-6-2006.The increase is Rs 2634/- [Rs 9998-7364] as on 1-1-2006.

WHAT IS THE ACTUAL PERCENTAGE OF INCREASE AS ON 1-1-2006 TO THE PENSIONERS?

It is only 35.7 % [2634x100/7364] as on 1-1-2006 and not 40% as much publicized by the Central Govt!



THE UNJUSTIFIED REVISED DA FORMULA WITH EFFECT FROM 1-1-2006!
Because of the unjustified Revised DA Formula of the Pay Commission, this increase of Rs 2634/ is not having cumulative effect but decreases to Rs 2464/ from 1-7-2006, Rs 2484/from1-1-2007, Rs 2327/from 1-7-2007,Rs1621/ from 1-1-2008 and Rs 2161/ from 1-7-2008! In this case,the existing Pension is Rs 8768/ and the Revised Pension is Rs 13505/-.We may approximately put the ratio as 2:3 and the increase in Pension is one third.Hence,the Percentage of existing percentage of DA should be reduced by one third or 33%.Has it been done accordingly?
Let us see below.
Existing Percentage.
5% from 1-7-2006,6% from 1-1-2007,6% from 1-7-2007,6% from 1-1-2008 .
Revised Percentage.
2% from 1-7-2006, 4%from 1-1-2007,3%from 1-7-2007 and 3% from 1-1-2008.
How then the DA was reduced to 2% instead of 3.5% from 1-7-2006, to 3% instead of 4% from 1-7-2007 and 3% instead of 4%?
So,the % of DA as on 1-1-2008 should be 15.5% and not 12%.We do not know the actual Prerevised % of DA as on 1-7-2008..The Correct DA formula should be fixed by the Central Govt.


WHAT WILL BE THE POSITION OF AN OFFICER DRAWING THE SAME PAY IN THE SAME SCALE WHO RETIRED ON OR AFTER 31-1-2006?

The Corresponding Revised Scale for the Pre Revised Scale of Rs 10000-325-15200 is 15600-39000 plus Grade Pay of Rs 6600/. His Pay will be fixed at Rs 28,830 [Rs22,230 plus Grade Pay of Rs 6600].as per Finance Ministry OM FNO1/1/2008 IC dt 30-8-2008.
He will get a Pension of Rs 14,415/- from 1-2-2006. He will get Rs 910/- more than the Officer who retired just before 1-1-2006!
WHY THIS DISPARITY WITHIN THE SAME SCALE?
WILL THE CENTRAL GOVT LOOK INTO THE ABOVE POINTS AND DO JUSTICE?

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